Should I Purchase These Stock and Bond Funds Now?

[nico08]

I do not believe in market timing. However, I have approximately 17 percent of my investment portfolio in a short term bond fund. I want to get this money into various mutual funds that will maintain my investment portfolio asset allocation of 80 percent stocks and 20 percent bonds.

I thought I read somewhere that there tends to be a rise in the market before a holiday weekend and a downturn in the market after a holiday weekend. So, in the short term, I have put off placing my orders for these funds until tomorrow. However, looking at the market today, it appears to be on an upswing. Like everyone else, I do not know how long the upswing will last.

Do you think I should go through with these purchases tomorrow, or do you think it would be better to hold off for a couple of months and keep the money in the short term bond fund during this time? Thank you for your feedback.

[hlfo718]

Don't waste your time on rise before this and fall after that crap. Just put your money in lump sum or DCA. All you need to do is buy, hold, rebalance.

[Animorph]

Are you moving all 17% from short bonds to equities? Or is it more balanced going to some different bonds and also equities?

In this case I'd likely go all in as soon as possible. Presumably you like your planned AA better than your current imbalance for a good set of reasons. And it's not as bad as being completely out of the market and trying to get back in.

If you want to feel good about it, try to create a chart of your current bonds versus your desired mutual funds. Over the past 3 months or so, has the current bond fund performed a little better than the desired funds? If so, you can feel good that you are selling a little high and buying a little low. If not, then you can see what waiting has cost you so far. Of course you may also risk that you'll want to wait a little bit longer to get a better deal, because that never ends.

[nico08]

Quote:

Originally Posted by Animorph Are you moving all 17% from short bonds to equities? Or is it more balanced going to some different bonds and also equities? In this case I'd likely go all in as soon as possible. Presumably you like your planned AA better than your current imbalance for a good set of reasons. And it's not as bad as being completely out of the market and trying to get back in. If you want to feel good about it, try to create a chart of your current bonds versus your desired mutual funds. Over the past 3 months or so, has the current bond fund performed a little better than the desired funds? If so, you can feel good that you are selling a little high and buying a little low. If not, then you can see what waiting has cost you so far. Of course you may also risk that you'll want to wait a little bit longer to get a better deal, because that never ends.

Hi Animorph:

I am moving all 17 percent from ultra short bond fund to "more balanced" different bonds (including long term, intermediate term, inveterm stment grade, high yield and international) and also equities.

[Animorph]

Quote:

Originally Posted by nico08 Hi Animorph: I am moving all 17 percent from ultra short bond fund to "more balanced" different bonds (including long term, intermediate term, inveterm stment grade, high yield and international) and also equities.

Most of the longer term bonds should be down quite a bit compared to ultra short. That should look like a good trade already.

[mickeyd]

Quote:

I am moving all 17 percent from ultra short bond fund to "more balanced" different bonds (including long term, intermediate term, inveterm stment grade, high yield and international) and also equities.

What are you trying to achieve by doing this? What prompted this action?

[nico08]

Quote:

Originally Posted by mickeyd What are you trying to achieve by doing this? What prompted this action?

I have had this money set aside and I want it to be a part of my overall investment portfolio asset allocation. I'm just not sure if the time to make the investments is now.

[Richard8655]

I'd avoid bond funds altogether and go with a good, reputable dividend paying ETF. VYM, DVY, and SDY are examples (IMHO).

[mickeyd]

Quote:

Originally Posted by nico08 I have had this money set aside and I want it to be a part of my overall investment portfolio asset allocation. I'm just not sure if the time to make the investments is now.

When do you believe will be the correct time?

If you are comfortable with your IPS and asset allocation (long term investment plan) do it today or ASAP. Market timing is usually a losers game. Duration will take care of bond fund issues that were previously mentioned.

[pb4uski]

Quote:

Originally Posted by mickeyd When do you believe will be the correct time? If you are comfortable with your IPS and asset allocation (long term investment plan) do it today or ASAP. Market timing is usually a losers game. ....

+1 If I had funds that needed to be invested I would decide a time horizon to do it and value average in over that time horizon. Once you decide to do it it is just a matter of sticking to the reinvestment plan.